DIGITALIZATION AND PUBLIC SERVICES: A LABOUR PERSPECTIVE - Report prepared by Eckhard Voss and Raquel Rego

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DIGITALIZATION AND PUBLIC SERVICES: A LABOUR PERSPECTIVE - Report prepared by Eckhard Voss and Raquel Rego
PUBLIC SERVICES
          INTERNATIONAL
          The global union federation of workers in public services

                                       DIGITALIZATION
ENGLISH

              AND PUBLIC SERVICES:
          A LABOUR PERSPECTIVE

                                  Report prepared by
                        Eckhard Voss and Raquel Rego
                                                                 September 2019
DIGITALIZATION AND PUBLIC SERVICES: A LABOUR PERSPECTIVE - Report prepared by Eckhard Voss and Raquel Rego
Digitalization and Public Services:
    A Labour Perspective
    This report was commissioned by PSI to Eckhard Voss1, Wilke Maack GmbH in
    Hamburg and Raquel Rego2, University of Lisbon in September 2019
    [Manuscript completed in May/June 2019]
    © Public Services International September 2019

    © all pictures Shutterstock collection 2019

2                                                                 PUBLIC SERVICES INTERNATIONAL
DIGITALIZATION AND PUBLIC SERVICES: A LABOUR PERSPECTIVE - Report prepared by Eckhard Voss and Raquel Rego
©José Camó

   Foreword

T
      he report “Digitalisation and Public Services: a labour perspective” provides
      a global overview and policy guidance for public services unions to ensure
      digitalisation lives up to its promise to enhance public service quality, effec-
tiveness and accessibility for users, while improving working conditions and creating
decent employment opportunities.

It looks at the shapes digitalization is taking in different public service sectors world-
wide; how it affects delivery, quality and access; employment, working conditions
and labour rights; what public service trade unions are doing about it; and what reg-
ulatory and governance considerations can be drawn from this review.

The research is based on the review of all main PSI sectors and on an interview
sample of 20 public service trade unions representatives from all continents. The
findings show that much of the impact of digital technologies on public services
depends on how these are regulated and used, and on whether workers and their
unions have a say or not on their development and introduction at the workplace.
It was commissioned by PSI with the support of the Friedrich Ebert Stiftung (FES),
and elaborated by Eckhard Voss, Wilke Maack GmbH in Hamburg and Raquel Rego,
University of Lisbon.

DIGITALIZATION AND PUBLIC SERVICES: A LABOUR PERSPECTIVE                                                  3
DIGITALIZATION AND PUBLIC SERVICES: A LABOUR PERSPECTIVE - Report prepared by Eckhard Voss and Raquel Rego
It finds that digital technologies can improve public service quality and access and
    contribute to democratic accountability and citizens’ trust in public institutions,
    while advancing workers’ occupational health and safety (OSH). At the same time, it
    shows those same technologies can open the door to public service privatization,
    create a dangerous dependency of public institutions on private digital technology
    providers, and deepen inequalities among public service users.

    The review concludes that:

    zz The introduction of digital technologies in public services is frequently driven by
       private corporate interests

    zz Corporate-led digitalisation is regularly associated with major public service user
       and data privacy abuse, resulting in a worsening of public service quality and
       efficiency

    zz Cost-cutting driven digitalisation tends to replace and slash public service
       jobs. It often uses new technologies for worker surveillance and performance
       monitoring, increases working time and extends job tasks

    zz It is urgent to establish an adequate regulatory framework for the introduction
       and use of digital technologies in public services and their workplaces. Such
       regulation must be developed in close dialogue with public services workers and
       their trade unions through meaningful participation, information and consultation,
       and by negotiating relevant wording in collective agreements.

    Digitalisation and artificial intelligence are changing the way public services func-
    tion for both users and public service workers. The way governments deal with the
    digitalisation process will influence those changes. Their actions will have negative
    outcomes if governments see digitalisation as a way to outsource functions, further
    abdicating their responsibilities and power. On the other hand, positive results could
    flow from governments leading the digitalisation process, defining rules, setting lim-
    its and implementing control procedures that can improve working conditions for
    public employees and make services more responsive and accessible for users.

                                                                       Rosa Pavanelli
                                                                   General Secretary
                                                         Public Services International

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DIGITALIZATION AND PUBLIC SERVICES: A LABOUR PERSPECTIVE - Report prepared by Eckhard Voss and Raquel Rego
Contents
Foreword                                                                                 3
Executive Summary                                                                        6
Digitalization Glossary                                                                  11
List of Acronyms                                                                         16

INTRODUCTION                                                                             17

1    DIGITALIZATION AND PUBLIC SERVICES: A SECTOR-SPECIFIC OVERVIEW                      24

     1.1    Context and drivers                                                          24
     1.2    Central government                                                           25
     1.3    Local and regional government                                                30
     1.4    Public utilities                                                             34
     1.5    Health and Social Services                                                   37
     1.6    Education and culture services                                               41
     1.7    Security, border and emergency services                                      42

2    IMPACT OF DIGITALIZATION ON PUBLIC SERVICES QUALITY,
     EFFICIENCY AND ACCESS                                                               46

      2.1 Disentangling myth, ideology and reality                                       46
      2.2 Impact on public service access and on the relationship
          between public services, citizens and users                                    48
      2.3 Impact on privacy and security issues                                          49
      2.4 Impact on efficiency and quality                                               50
      2.5 Impact on public finances                                                      52

3    IMPACT OF DIGITALIZATION ON PUBLIC SERVICE EMPLOYMENT
     AND WORKING CONDITIONS                                                              54

      3.1   Impacts on employment                                                        54
      3.2   Impact on working conditions: The overall picture                            56
      3.3   Skills and competence requirements                                           58
      3.4   Occupational health and safety                                               60
      3.5   Working time and work-life balance                                           61
      3.6   Work monitoring and surveillance                                             63
      3.7   Impact on existing and new inequalities in the labour market and workforce   64
      3.8   ‘Digital Taylorism’: Emergence of precarious forms of employment             66

4    TRADE UNIONS AND PUBLIC SERVICE DIGITALIZATION                                      68

     4.1    Involvement in digitalization-related public policies                        70
     4.2    Anticipation and managing of digital change and restructuring                73
     4.3    Collective agreements setting frameworks for socially just digitalisation    73
     4.4    Trade union guides and model collective bargaining agreements                75
     4.5    Regulating the impact of digitalization on occupational health and safety    76
     4.6    Local level bargaining and direct workers involvement                        78
     4.7    Shaping and regulating working time, telework and work-life balance          79
     4.8    The right to training and qualification                                      80
     4.9    Impact of digitalization on workers and trade union rights                   82

5    CONCLUSIONS AND RECOMMENDATIONS                                                     84

References                                                                               88
Annex: Trade unions participating in the study                                           92

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DIGITALIZATION AND PUBLIC SERVICES: A LABOUR PERSPECTIVE - Report prepared by Eckhard Voss and Raquel Rego
Executive Summary

    1.   This report was commissioned by PSI. In ad-              forms of work organization—including in gov-
         dition to an extensive literature review, the            ernment and public services. Public service
         study finds its main sources in interviews and           digitalisation is being actively promoted and
         information gathered from trade union repre-             fostered by international organisations such
         sentatives from PSI-affiliated organizations             as the United Nations (UN), the Organization
         in different public service sectors around               for Economic Cooperation and Development
         the world, including in Africa (Burkina Faso,            (OECD) or the EU Commission to increase ef-
         Morocco), Asia (South Korea, Singapore,                  ficiency and improve the quality and accessi-
         India), North America (Canada, United States),           bility of public services. According to the pro-
         South America (Argentina, Brazil) and Europe             ponents of public service digitalisation, digital
         (Denmark, France, Germany, Norway, Spain,                technologies and automation would also im-
         and the United Kingdom). The interviewees                prove workers’ working conditions, reduce
         represent a wide range of public services from           health and safety risks and improve their work-
         central administration and local and regional            life balance.
         government to health and care services, hos-
         pitals, utilities, police, emergency services       4.   However, there are good reasons to doubt
         and education and cultural services.                     digitalisation being a win-win recipe for all
                                                                  public services. Evidence suggests that often
    2.   It focusses on research questions that so far            the introduction of digital technologies and au-
         remain largely unanswered by current litera-             tomation is mainly being driven by a will to in-
         ture. These questions pertain to the introduc-           crease productivity and work intensity as well
         tion of digital technologies across different            as cutting jobs. Evidence shows that the pro-
         public sector service branches and the moti-             vision of digital know-how, in both hardware
         vations that underpin it (1), but also to the im-        and software, increases the pressure placed
         pact of public service digitalisation on service         on public authorities to outsource essential
         quality, effectiveness as well as access to pub-         activities, including those related to critical
         lic services (2). The report then addresses the          infrastructure. Furthermore, it is proven that
         impact of digital technologies and digitalised           while digitalisation and the increased use of
         workplaces and work environments on public               digital devices can have positive effects on
         service employment and working conditions                working conditions, they may also be used to
         (3) and how trade unions have addressed                  monitor worker performance and behaviour, to
         these issues by own activities, within social            intensify and compress work processes and
         dialogue and by collective bargaining (4). The           surveillance, and to extend working time or at
         analysis concludes with highlighting key re-             least availability.
         sults as regards the governance systems and
         regulatory tools that exist (or need to be de-      5.   Digitalisation goes beyond past waves of
         veloped) in order to secure the protection and           technology-driven change: The digitalisation
         interests of public service users and workers in         of public services does not only concern the
         the context of service digitalisation (5).               introduction and application of new technol-
                                                                  ogies and tools such as sensors, smart de-
    3.   A large body of literature has already been              vices, chatbots, cloud computing, data ana-
         published on digitalisation, the impact of new           lytics, smartphone apps, machine learning,
         technologies on the world of work and the in-            artificial intelligence or blockchain technolo-
         troduction of new technologies and related               gy. More importantly, it concerns the far more

6                                                                        PUBLIC SERVICES INTERNATIONAL
DIGITALIZATION AND PUBLIC SERVICES: A LABOUR PERSPECTIVE - Report prepared by Eckhard Voss and Raquel Rego
wide-ranging impact these technologies have               professionals to develop and manage digi-
     on the way public services are provided, the              tal-service technology, which further increas-
     relations between public services and citizens,           es their overreliance on large private compa-
     and the type of labour needed. Since they                 nies. The result is that governments have, for
     are often developed, provided and owned by                example, deployed Artificial Intelligence (AI)
     global tech companies such as Google, Apple               technologies and services by contracting pri-
     or Microsoft, they also change the power rela-            vate companies and remained dependent on
     tionship between public and private actors in             them, creating additional risks regarding the
     the delivery and control of public services.              sharing of citizens’ data with business actors.

6.   In central government and administration, the        8.   This state of dependency is also an issue in
     study shows that e-government and ‘digital                local and regional governments where the
     first’ approaches in public services and admin-           ‘Smart City’ concept has emerged, ushering
     istration are strongly promoted by internation-           in the use of a variety of new, digital technol-
     al organisations such as the UN or the World              ogies such as data gathering and exchange
     Bank as the one and only path for government              and ‘digital first’ approaches in local public
     modernisation. Digitalisation of central gov-             services, and thereby shaping new forms of
     ernment function can have positive effects, as            interaction between public services and us-
     was highlighted by trade union representatives            ers/citizens. Evidence drawn from Smart City
     in Brazil where newly digitalised public servic-          programmes in developing countries shows
     es such as online scheduling, online tax col-             that underneath the glossy promise of making
     lection and e-processes in court have brought             cities clean and “intelligent”, Smart City pro-
     benefits to users in terms of public service ef-          grammes are principally a tool to attract foreign
     ficiency and quality.                                     direct investment for technology-driven PPPs
                                                               and privatisation in local public services. Few
7.   Large ‘smart government’ programmes—such                  Smart City programmes are oriented towards
     as those implemented in Singapore, the intro-             improving public service access, addressing
     duction of digital identities and land registra-          inequality and citizens’ needs, or redefining
     tion in India, or tax payment practices based             data as common goods rather than a private
     on blockchain technologies in Denmark—show                commodity.
     that digitalisation in central government and
     public administration is a global trend and is       9.   Data gathering and analytics have also become
     being actively promoted by large multinational            key drivers of digitalisation in the utilities sec-
     tech companies, whose key role as ‘enablers’              tor, namely in water provision. Here digitalisa-
     goes far beyond the basic function of deliver-            tion is increasingly affecting the way in which
     ing hardware and software. Public sector trade            public utilities are modernised and managed.
     unions in the United States or Canada critically          Technologies such as the Internet of Things,
     noted that the digitalisation of government and           smart grids, predictive maintenance or smart
     administration provides a huge opportunity for            metering are not only having an impact on how
     data gathering and use for large private tech             utilities are managed but are also transforming
     companies. Technological dependency on big                providers by changing their relations with us-
     data corporations is problematic because pub-             ers, the role of suppliers and the involvement
     lic administrations often lack the resources to           of digital companies as essential parts of ser-
     hire suitably qualified IT specialists and skilled        vice provision. The utilities sector presents

DIGITALIZATION AND PUBLIC SERVICES: A LABOUR PERSPECTIVE                                                             7
DIGITALIZATION AND PUBLIC SERVICES: A LABOUR PERSPECTIVE - Report prepared by Eckhard Voss and Raquel Rego
significant technological gaps and increasing       12.   As regards the impact of digitalisation on pub-
          access inequality for new digital services and            lic services quality, efficiency and access,
          tools. The case of Argentina illustrates these            the study has found that digitalisation is sig-
          gaps within a country: while smart electricity            nificantly changing the content of public ser-
          meters are in use and bitcoins have become                vices and the way they are delivered, but not
          a valid payment method for public transporta-             necessarily for the better. Interviewed union
          tion nationwide, in some regions, horses are              representatives expressed concern that, while
          still used by many citizens as a means of local           new technologies can bring improvements
          transport.                                                to the quality, efficiency and accessibility of
                                                                    public services, this ideal scenario is far from
    10.   The ambiguity of the impacts of digitalisation            automatic and requires specific regulation and
          is very clear in health and social services and           social framework conditions geared towards
          in education services. New digital technol-               making digitalisation work for the common
          ogies such as e-health or e-medicine, digital             good rather than private gains.
          patient management, remote learning and dig-
          ital medical devices can help and support doc-      13.   In the case of service accessibility, the ‘digital
          tors, nurses, teachers and administrative staff           first’ principle is self-contradictory when large
          in the delivery of health and social services             parts of a country’s population have no access
          and have the potential to provide added value             to the Internet and digital devices or are not
          for patients, students and workers who need               IT literate. The elderly, people with disabilities,
          to update their skills and knowledge. Digital             low-skilled workers and low-income groups
          tools and technologies can also improve ser-              are most likely not to see their access to pub-
          vice access and enhance service provision                 lic services enhanced as a result of their dig-
          in remote or rural areas. However, according              italisation. UK public service unions reported
          to evidence from the United Kingdom, South                that in Britain 9 million citizens are practically
          Korea or the United States, digitalisation and            excluded from digitalised services. In develop-
          automation are often used to reduce the hu-               ing countries, access to digitalised public ser-
          man factor and headcount in these same la-                vices is even more challenging as large shares
          bour-intensive public service sectors.                    of the population are unable to participate in
                                                                    the ongoing processes of digital change.
    11.   The increasing role and influence of powerful
          tech companies over public service digital-         14.   The ‘digital first’ approach, coupled with the
          isation emerges as a constant across all sur-             outsourcing of digital systems development
          veyed regions. This is also the case of digital           and the privatization of certain government
          technologies and artificial intelligence pro-             functions also poses a threat to the data se-
          grammes used in security services, police                 curity, privacy and protection of users and
          or emergency services. This raises questions              citizens as well as public service workers.
          not only about the dependence created be-                 Interviewed unions emphasised the urgent
          tween these vital services and private corpo-             need to rethink the design and objectives of
          rate actors, but also about their cost-benefit            public service digitalisation and adapt regula-
          ratio, personal data protection, civil rights and         tory frameworks in order to effectively tackle
          behaviour surveillance and monitoring.                    the new risks it poses.

8                                                                          PUBLIC SERVICES INTERNATIONAL
DIGITALIZATION AND PUBLIC SERVICES: A LABOUR PERSPECTIVE - Report prepared by Eckhard Voss and Raquel Rego
15.   Digitalisation also has a significant impact              tech companies, engineering and consultancy
      on public finances and public service budg-               services, who are benefitting from job crea-
      ets. While some of the implications are direct,           tion and rising income levels, contrasts sharp-
      others are less immediately visible. The intro-           ly with that of public service workers. As far
      duction of new technologies and processes                 as public service employment is concerned,
      to public services can represent a significant            interviewed public sector unions highlight-
      investment in infrastructure, tools and exper-            ed significant negative effects. One of these
      tise (often brought in from external suppliers or         effects is the substitution of tasks and jobs
      via PPPs). Public sector unions in Canada and             that can easily be automated such as admin-
      Germany highlighted that the outsourcing of               istrative work, invoicing and the handling of
      certain activities, the leasing and maintenance           standard cases. Digitalisation and automation
      of digital devices and the cost of licences or            too often result in work intensification or high-
      data security services are resulting in signifi-          er stress levels. Furthermore, the spread of
      cant direct and indirect costs. These costs are           digitally mediated and platform work in public
      often underestimated, as is the investment                services, especially the health and care sec-
      needed to train and develop the skills and                tor, are transforming employment relationship
      competences of public sector workers when                 patterns at the expense of employees, who
      such new technologies are introduced.                     are often pushed to go into so-called ‘bogus’
                                                                self-employment or contracted under precari-
16.   However, this is not the only way in which                ous conditions.
      digitalisation is impacting public budgets and
      income. The emergence of new forms of dig-          18.   The study shows that public service unions
      ital-based employment, such as digitally-me-              are not against digitalisation, quite the oppo-
      diated service work and online platform work              site, as long as it serves public interest. The
      also play a significant role. Indeed, working             unions clearly acknowledge that these tech-
      conditions in such digitally mediated and man-            nologies can be beneficial to public service
      aged employment are often precarious and                  users and workers, for example by enabling
      low-paid. Workers tend to be “self-employed”,             social care workers to optimise their routes
      which means that, even in cases where they                and spend more quality time caring for pa-
      are completely dependent on or fully availa-              tients. Mobile devices and tracking software
      ble to the digital platform provider employing            can also improve the safety of police officers
      them, said platform does not pay any form                 and social workers when they find themselves
      of social security contribution into the social           in dangerous situations at work. However, the
      insurance system for their work. In addition,             same technologies can also be used to con-
      global tech corporations have developed so-               stantly monitor employee performance and
      phisticated systems of corporate tax avoid-               behaviour, to increase their pace of work and
      ance that starve public finances.                         to limit pay only to the time spent with service
                                                                users.
17.   Digitalisation is also affecting employment and
      working conditions. The situation of private        19.   The study also shows that public service trade
      sector service workers, such as highly quali-             unions from all continents are actively engag-
      fied IT specialists and managerial staff in high          ing and taking initiatives in order to address

DIGITALIZATION AND PUBLIC SERVICES: A LABOUR PERSPECTIVE                                                            9
DIGITALIZATION AND PUBLIC SERVICES: A LABOUR PERSPECTIVE - Report prepared by Eckhard Voss and Raquel Rego
the challenges arising from the introduction       24.   More recently, trade unions such as the SPFQ
           of digitalisation and shape a just digital tran-         trade union from Quebec, Canada or HK
           sition in public services.                               Kommunal in Denmark have initiated their own
                                                                    research projects or developed their own ex-
     20.   Trade unions are voicing their positions and             pertise as regards the application of machine
           demands with regard to top-down, govern-                 learning, process automation and artificial
           ment-led digitalisation programmes in all                intelligence in public service processes and
           major public service sectors and especially              decision-making.
           in health and social care, education, public
           utilities and local and regional government        25.   Beyond public services, the report has shown
           services.                                                that public service trade unions are also key
                                                                    actors in shaping the debate about the over-
     21.   Some unions have included digitalisation-re-             all future of work, including the need to adapt
           lated issues in their collective bargaining              the concept of employment and employment
           agendas at all possible levels, negotiating              contractual relationships to the new forms of
           bipartite, tripartite and cross-sectoral agree-          interaction that have arisen between work-
           ments, as well as regional, municipal and                ers, online platforms and other types of digi-
           workplace-based collective agreements to in-             tal-based intermediaries.
           fluence and shape the management of digital
           change processes in public services.               26.   Finally, public service unions are actively in-
                                                                    volved and often the ones to initiate public
     22.   In some cases trade unions have succeed-                 civic debate in their workplaces, communities
           ed in securing and placing value on workers’             and countries on core questions surrounding
           representation and participation as ‘digital             the future of public services, as well as their
           change agents’ (e.g. Denmark or Norway). In              role and contribution to democracy, equality,
           other cases (e.g. United States, Germany or              the common interest and investment in criti-
           Italy) they have negotiated on the subject of            cal services and infrastructures for all, not for
           digitalised work and employment conditions,              the few.
           such as ‘telework’, ‘flexible’ and ‘smart’ digi-
           tal work, and thereby have asserted the ‘right     27.   The report clearly shows that, in the countries
           to disconnect’ for public and private service            and sectors where strong, organised work-
           workers as guaranteed by national legislation            ers’ representation exists and enjoys a power-
           in France and Italy.                                     ful voice, it plays an important, positive role
                                                                    in prompting and shaping the policies and
     23.   Trade unions are also making a critical contri-          regulation needed to accompany the public
           bution to a better understanding of the health           service digitalisation process. Furthermore,
           and safety risks associated with digitalized             countries and sectors in which trade unions
           public service workplaces. They are support-             were allowed to freely exercise their role and
           ing workers through guidelines, model work-              were involved and valued in the process from
           place and framework agreements at company                the beginning achieved better results in ensur-
           and sector level (e.g. UK, US or Germany) and            ing a more socially just digital transition for
           the negotiation of new and extended rights to            public service workers and users alike. q
           training (e.g. Singapore).

10                                                                         PUBLIC SERVICES INTERNATIONAL
Digitalisation Glossary

Term                   Explanation
“Privacy by design”    Privacy by design or privacy by default means that appropriate software and hardware is
and “privacy by        designed and developed in such a way that relevant data protection measures are taken
default”               into account from the outset. The technology design is geared towards respecting data
                       protection requirements in all areas. The European General Data Protection Regulation
                       (GDPR), which entered into force in May 2018, mandates that “privacy by design” is
                       compulsory for all companies with users in the EU.
Agile Work             Initially developed by IT experts with the aim of defining new ways of developing software
                       with greater responsiveness to changing user needs. From this collaboration the ‘Agile
                       Manifesto’ emerged, which put a focus on collaboration between self-organised cross-
                       functional teams and their customers. Since then the ‘agile’ method of project and
                       team work has spread to organisations of all types and sizes. Today, ‘agile’ is a business
                       buzzword in management theory. It is linked to project management software such as
                       Scrum or Kanban and the promise of doing things better, faster and more effectively
                       than traditional teamwork-based processes.
Algorithm              In mathematics and computer science, an algorithm is a step-by-step instruction to solve
                       a problem or carry out a task. Algorithms can process data and perform calculations,
                       automated reasoning and other tasks. For example, they make it possible for navigation
                       software to find the shortest way from A to B. Algorithms are also important in
                       selecting individualised adverts, promotions or other suggested content that we
                       receive when using programmes such as Google, Facebook or Instagram. Algorithms
                       are also increasingly being used in the world of work, namely in HR and recruitment
                       for screening purpose and for providing suggestions as to which candidates might best
                       match a position in an organisation.
Artificial             An area of computer science that emphasizes the creation of intelligent machines that
Intelligence (AI)      work and react like humans. The use of artificial intelligence is present in all areas of
                       everyday life, from national language processing (Siri, Alexa) to online  chatbots or HR
                       software that supports decision making when hiring and firing employees. According
                       to the U.S. IT Magazine VERGE, in Summer 2019, 300 Amazon employees in Baltimore
                       were dismissed because they did not match productivity targets. Both the productivity
                       targets and the identification of the employees were done by AI.
Big Data (Analytics)   Data volumes that are too large, too complex, too fast moving or too weakly structured
                       to be evaluated with manual and conventional methods of data processing.
Biometric data         Biometrics is the science of body measurement of living beings. Biometric data is
                       known to be fingerprint, facial or iris characteristics, but can also relate to behavioural
                       characteristics such as writing behaviour, lip movement or voice.
Bitcoin (or “Crypto    Bitcoin is a digital currency or virtual money. There are no physical coins or banknotes in
currency”)             this payment system. The fundamental difference between crypto currencies like Bitcoin
                       and conventional money is that the digital means of payment function completely
                       independently from banks or states. Bitcoin transactions are completely anonymous
                       and decentralised and do not require the intervention of an additional authority, such
                       as a bank, between the partners involved. Thus they are beyond the control of the state.
                       In addition, the true identity of both actors remains hidden, since only the account
                       balances and Bitcoin addresses used for transactions are visible to the public. Whether
                       “digital” coins have the potential to become an alternative currency, however, will only
                       become clear in the future, as the focus has been drawn to the speculation function
                       rather than the online payment function, as the significant current Bitcoin hype proves.

DIGITALIZATION AND PUBLIC SERVICES: A LABOUR PERSPECTIVE                                                             11
Term                Explanation
     Blockchain          A blockchain is a database or ledger that consists of a chain of data blocks. This
                         chain is constantly extended by new blocks in which transactions are stored. The
                         principle can be compared to an accountant who, on a daily basis, writes all transfers
                         in a network down on a sheet of paper and staples it into a large folder in the
                         evening. The sheet of paper would be the data block, the folder the block chain. In
                         a blockchain, all participants receive a copy of the updated block chain. Thus, since
                         there are as many copies as there are users, the information in the blockchain is stored
                         on thousands of computers around the globe. This makes it virtually forgery-proof
                         compared to conventional, central databases. What information is stored in the data
                         blocks and how it is used does not matter, be it Bitcoins, supply chain data, freight
                         books, e-government data, medical records, power-grid management data, border
                         control, or public utility data such garbage disposal, urban public transport passenger
                         data. Blockchain technology currently is actively promoted by innumerable software
                         companies throughout the world, but in particular in China and other Asian countries.
     Chatbot / bot       A chatbot (or simply ‘bot’) is a text-based dialogue system that allows one to chat
                         with a machine. It has a dedicated area for text input and output, through which it is
                         possible to communicate in natural language with the machine system behind it. Due
                         to increasing computer power, chatbot systems can access more extensive data faster
                         and therefore offer the user intelligent dialogue. Such systems are also referred to as
                         virtual personal assistants. Prominent examples are the Google Assistant or Amazon’s
                         Alexa.
     Cloud computing     IT infrastructure that is made available via the Internet. It is a business service that
                         usually includes storage space, computing power or application software. In technical
                         terms, cloud computing describes the approach of making IT infrastructures available
                         via a computer network without having them installed on the local computer. The
                         largest cloud computing suppliers are Microsoft, Amazon, Salesforce, SAP and IBM
                         that have developed cloud computing as a new and increasingly important field of
                         business (e.g. Infrastructure as a Service, Platform as a Service, Software as a Service).
     Collaborative       A collaborative robot (Cobot) is an industrial robot that works together with human
     robotics (Cobot)    workers.
     Crowdsourcing       Crowdsourcing is the outsourcing of tasks or projects from a company to a group of
                         internet users. The term crowdsourcing is made up of the words outsourcing and crowd.
                         However, crowdsourcing does not mean the outsourcing of corporate tasks to third
                         parties, but rather the outsourcing of tasks to a crowd of people, usually freelancers
                         or smaller companies. Companies mainly outsource tasks to a large global crowd of
                         workers in order to avoid direct labour contracts, which would include social security
                         contribution obligations, and stimulate cost-competition between crowdworkers. See
                         also  Crowdworkers
     Crowdworkers        Crowdworkers are people who accept work orders that are made available to a large
                         number of internet users (crowd). The orders are usually offered via internet platforms
                         (so-called crowdsourcing platforms) and, depending on the order/project, processed
                         by one or more crowdworkers. Very different types of crowdwork exist, such as local
                         services such as private cleaning, gardening or homecare services as well as IT- or
                         Platform-based crowdwork for freelancers in the field of journalism, media or design
                         where crowdworkers compete globally. See also  Gig Economy
     Crypto currency     See  Bitcoin
     Cyberattack         An attempt by hackers to damage or destroy a computer network or system. Larger
                         cyberattacks that gained large media coverage were for example the attack of several
                         public organisations, banks, the parliament and ministries in Estonia in 2007 or the
                         attack on the Ukrainian electricity system in 2015.
      Digital Identity   As opposed to an identity in the real world, where persons are characterised by
                         attributes such as physical characteristics or personal data, digital identities rely on
                         electronically processable characteristics. Such characteristics can be a username and
                         password, smart cards and tokens or biometric data. Often, in both the digital and the
                         real world, multiple attributes are combined to better secure unique identification.

12                                                                        PUBLIC SERVICES INTERNATIONAL
Term                        Explanation
 Digital-first              Principle of public service provision where the access of users to services and/or the
                            communication between users and public service employees is done digitally, i.e. via
                            the Internet, through computers and other digital devices.
 Digital natives            The term digital native refers to a person of the social generation who grew up in
                            the digital world. By contrast, the term digital immigrant exists as an antonym for
                            someone who has only come to know this world in adulthood.
 Disruptive                 In contrast to incremental or evolutionary innovations, disruptive innovations refer
 technologies /             to those that change the rules of the game on the market and/or in user behaviour
 innovations                for digital devices and/or data. Disruption is often not triggered by the technology
                            itself but by a change in its usage. One example is the MP3 audio format. This
                            technology did not trigger any disruption, its use in the context of the functionality
                            and user-friendliness of portable MP3 readers such as Apple’s iPod or built-in
                            smartphone applications did so.
 E-government               E-government stands for electronic government. This refers to the increased use
                            of modern IT technologies and electronic media for government, its administrative
                            processes and service delivery. Forms of e-government include offices or authorities
                            communicating with each other or with citizens electronically, such as online tax
                            declaration portals, birth certificate requests or motor vehicle registration done
                            online via a government’s webpage.
 eHealth, eMedicine         eHealth, also known as Electronic Health, refers to the use of digital technologies
                            in the healthcare and medical sector. It refers to all tools and services that use
                            information and communication technologies (ICT) for prevention, diagnosis,
                            treatment, monitoring and management of pathologies, as well as clinical and
                            patient data collection and processing. Considering the large amount of private
                            health data gathered, data protection is an important issue.
 Gig economy, Gig(s)        Refers to a part of the economy and labour market in which small orders are placed
                            on short notice with independent, self-employed persons or freelancers through the
                            use of digital platforms (e.g. Uber for auto-transport, Eat for food deliveries, etc.).
 GPS tracking               A GPS tracker is a device that can be located via the satellite system and emits radio
                            signals indicating its location that are received by an external reception device. They
                            can be used to track objects and people. GPS tracking functions are integrated into
                            smart phones and many other devices for daily use.
 Gunshot detection          A gunfire locator or gunshot detection system is a system that detects and conveys
 platforms                  the location of gunfire or other weapon fire using acoustic, optical, or potentially
                            other types of sensors, as well as a combination of such sensors. These systems
                            are used by law enforcement, security companies, the military and businesses to
                            identify the source and, in some cases, the direction of gunfire and/or the type of
                            weapon fired.
 Industry 4.0               After mechanization (Industry 1.0) based on steam technology, mass production
                            (Industry 2.0) based on Taylorism and automation (Industry 3.0) based on electricity
                            and analogue computing, the advent of digital technologies and of the Internet of
                            Things and Services in manufacturing is leading to the fourth industrial revolution
                            or Industry 4.0.
 Internet   of     Things   General term for information infrastructure technologies that make it possible to
 (IoT)                      network physical and virtual objects (e.g. computers, cars, trash bins, traffic lights,
                            etc.) and allows them to communicate through information and communication
                            technologies. An example of this are self-scan products in supermarkets whereby
                            an RFID (radio-frequency identification) chip emits the price and digital check out
                            occurs automatically. Traffic management and smart traffic lights or sensor-based
                            trash services in smart cities are also examples of IoT-based processes.
 Data mining                Data mining is the systematic application of statistical methods to large amounts of
                            data (in particular  “big data” or mass data) with the aim of identifying correlations,
                            cross-connections or trends that so far have not been detectable due to a lack of
                            computer capacity. Data mining is not only carried out for scientific reasons but also
                            by private actors in order to develop new solutions or business ideas, for example in
                            the field of  predictive maintenance or  eHealth.

DIGITALIZATION AND PUBLIC SERVICES: A LABOUR PERSPECTIVE                                                               13
Term               Explanation
     Machine learning   Generic term for the ‘artificial’ generation of knowledge from experience that mimicks human
                        learning. An artificial intelligence system (a robot or a computer) can be set to learn from
                        examples, interactions and experience and can embed them into its system as general rules
                        after the learning phase has ended. It will then be able to use that information in the future in
                        similar situations. Machine learning is a part of  ‘artificial intelligence’.
     mHealth            The term mHealth (also mobile health) stands for the support of medical procedures and
                        health care measures by devices such as smartphones, tablets or personal digital assistants
                        ( PDA) as well as by lifestyle and health applications that can be operated via sensors.
                        Mobile health includes a number of technical applications, for example the determination of
                        vital signs such as blood sugar or body temperature, but also communication or motivation
                        applications, which are intended to remind the user to take medication. The use of apps plays
                        a major role here, because the sensors installed in the smartphones can capture and process
                        a large amount of health-related data. The main field of application for mHealth is remote
                        monitoring patients with chronic illnesses. Automatic SMS dispatch from health providers to
                        patients is the method most frequently used for this technology, which is expected to expand
                        in the future in the prevention and treatment of dementia, Alzheimer’s disease and other
                        neurodegenerative illnesses.
     MOOC               Massive Open Online Course refers to online courses mainly used in higher education and
                        adult education, which usually have large numbers of participants as they do not impose any
                        access or admission restrictions.
     Once-Only          The aim of the Once-Only principle is that citizens and companies only have to communicate
     principle          certain standard information, such as name and surname, birthdate, sex and address, to
                        public authorities and administrations once, thereby avoiding having to do it every time. In
                        compliance with data protection regulations and with the explicit consent of the users, public
                        administrations are then allowed to reuse the data and exchange them with each other. The
                        Once-Only Principle aims to reduce the administrative burdens facing citizens and businesses.
     PDA                Personal Digital Assistant, i.e. a small mobile handheld computer device used to write text or
                        manage schedules, emails and telephone numbers. Many of these features are now typically
                        embedded into smartphones.
     Platform           The platform economy is economic and social action made possible by digital platforms
     economy            that typically function as online matchmakers or technology frameworks and operate as
                        intermediaries, putting offer and demand for a certain product or service in touch. The most
                        common type by far are “transaction platforms” such as Amazon, Airbnb, Uber or Baidu.
     Predictive         Predictive analytics include a variety of statistical techniques such as  data mining,
     analytics          predictive modelling, and  machine learning that analyse current and historical collected
                        data, extrapolate them and make predictions about future trends and events. Predictive
                        analytics are used in marketing, financial services, insurance, telecommunications, retail,
                        travel, mobility, healthcare, child protection, capacity planning, social networking and other
                        fields. They represent an extremely valuable market and carry the potential for great influence
                        in economies and societies.
     Predictive         A maintenance process based on the evaluation of machine-processed data analysis
     maintenance        collected from advanced manufacturing or industry 4.0. The real-time processing of the
                        underlying data makes it possible to forecast maintenance needs and consequently reduce
                        downtimes. In addition to the interpretation of sensor data, this requires a combination of
                        real-time analysis technology and an in-memory database that can assign a technician to
                        solve a problem before it occurs.
     Robot Process      Robot Process Automation is a term that describes the application of  algorithms and 
     Automation (RPA)   artificial intelligence to “copying” and conducting administrative and other work processes
                        that had previously been carried out by humans in the field of pay rolling, accounting tasks or
                        tax collection or basic functions of human resources management, for example.
     Servicification    Term indicating that manufacturing activities and competitiveness in the world economy
                        increasingly depend on services rather than products (vs. “commodification”).

14                                                                           PUBLIC SERVICES INTERNATIONAL
Term               Explanation
 Sharing economy   This is a collective term for companies, business models, platforms, online and offline
                   communities that enable the shared use of completely or partially unused resources such as
                   real estate (AirBnB) or transport (BlaBlaCar) by connecting offer and demand for such goods
                   and services.
 Smart meters /    An “intelligent” or smart meter is an electricity, gas, water or heating meter that reads
 grids             and transmits digital data regarding consumption and maintenance needs and is therefore
                   integrated into a communication network connected to the provider. Such intelligent meters
                   have been in use since the 1990s, primarily for large customers. They have also been available
                   to private households since around 2010. Depending on the model, intelligent meters can
                   also transmit data to the energy supply company at fast intervals, which should enable it to
                   better manage its network and resources and anticipate peaks and downtimes (Smart Grid
                   system).
 Social rating/    Social rating or credit systems are not new. In the past, financial lenders and mortgage
 credit systems    providers were already tracing the timely manner in which clients paid their debts, giving
                   them a score for solvency. Such systems have expanded in other areas, for example online
                   shopping or in the rating of Uber drivers and passengers or restaurants and hotels (Tripadvisor,
                   Booking, AirBnB). Building on these practices, current social rating/credit systems are being
                   expanded to all aspects of life, and in the case of authoritarian states, used to judge citizens’
                   social behaviour and potential opposition to rulers.
 Taylorism         Taylorism describes the principle of controlled work processes established by the American
                   Frederick Winslow Taylor (1856-1915). It is a management system that predicates breaking
                   down production into specialised, repetitive tasks in order to increase productivity and
                   efficiency.
 Tele-health       Tele-health covers the dissemination of health-related services and information (including
                   patient’s information) via electronic information and telecommunication technologies. See
                   also  eHealth and  mHealth
 Telework          Forms of work in which employees carry out all or part of the work outside the employer’s
                   premises. In the case of home work, this work takes place at the employee’s home. In most
                   cases, the results of said work are then transmitted to the employer via digital channels
                   (e-mail, shared server, website etc.).
 Uberisation       Uberisation is a term that has generally come to indicate a highly unprotected employment
                   relationship based on a digital platform in which services (such as Uber taxi services) are
                   offered on short-term or instant demand through direct contact between a user and a supplier
                   via a mobile application or website. The intermediary company (in this case Uber) neither
                   owns cars nor employs drivers directly but earns a percentage on the service.
 Virtual reality   Virtual reality or VR is the computer-based display and perception of reality in a real-time
 (VR)              mode that often allows for interaction with the user, for example in the context of computer
                   games. VR today is used in many areas, e.g. in surgery, remote maintenance and repairs or
                   training (e.g. flight or train simulation).
 Work on demand    Work on demand is a request put to an individual to deliver work for a specific, limited time.
                   While work on demand has existed as a business practice for a long time (consultancies,
                   short-term contracts, time-bound outsourcing etc.) the digitalisation of work and the rise
                   of online platforms ( Platform economy  Uberisation) that operate as intermediaries for
                   work on demand shone a new light on these practices. Work on demand is often presented
                   as a ‘win–win situation’ by platforms: workers get to tailor their work time to their personal
                   responsibilities outside the workplace, while businesses can adjust their workforce according
                   to their short-term needs. This type of work principally generates non-standard form of
                   employment.
 Zero-hour         Zero-hour contracts are an extreme form of flexible working used by some employers that do
 contracts         not specify a minimum number of working hours per week. By signing a zero-hour contract
                   a worker agrees to be available for work at any time as required, while the employer is not
                   obliged to provide any work and the worker is not obliged to accept the work offered. The
                   worker is expected to be on call and receives compensation only for hours worked. This
                   approach generates precarious employment as it typically shifts most risks and costs of the
                   employment relationship onto the worker and away from the employer.

DIGITALIZATION AND PUBLIC SERVICES: A LABOUR PERSPECTIVE                                                               15
List of Acronyms

     AFT         American Federation of Teachers (United States)
     AUPE        Amalgamated Union of Public Employees (Singapore)
     CFDT        Confédération française démocratique du travail (France)
     CGT         Confédération générale du travail (France)
     CNTSS/CUT   National Confederation of Social Security Workers (Brazil)
     CSQ         Centrale des Syndicats du Québec (Canada)
     CTM         Confederación de Trabajadores Municipales Confederation of Municipal
                 Workers (Argentina)
     DAMD        Danish General Practice Database
     EGDI        E-Government Development Index
     EPSU        European Federation of Public Service Unions
     ETUC        European Trades Union Confederation
     ETUI        European Trade Union Research Institute
     FNV         Federatie Nederlandse Vakbeweging (Netherlands Trade Union Confederation)
     FP-CGIL     Funzione Pubblica Confederazione Generale Italiana del Lavoro (Public
                 Services Sectoral branch of the Italian Trade Union Confederation)
     FSC/CC.OO   Federation of Services to Citizens (Span)
     GPS         Global Positioning System
     HK          Handels- og Kontorfunktionærernes Forbund (Denmark)
     ILO         International Labour Organisation
     IoT         Internet of Things
     IT / ICT    Information Technology / Information and Communication Technology
     KMHU        Health and Medical Workers Union (Korea)
     LED         Light Emitting Device
     NHS         National Health Service
     OECD        Organisation for Economic Cooperation and Development
     OHS         Occupational Health and Safety
     PPP         Public Private Partnership
     PSI         Public Services International
     PSIRU       Public Services International Research Unit
     RPA         Robotized Process Automation
     SFPQ        Syndicat de la Fonction Publique et Parapublique du Québec (Canada)
     SYMEB       Syndicat des Médecins du Burkina (Burkina Faso)
     TUAC        Trade Union Advisory Committee at OECD
     UN          United Nations
     UNISON      UNISON Trade Union (United Kingdom)
     UNITE       Unite Trade Union (United Kingdom)
     UNSA        Union nationale des syndicats autonomes (France)
     ver.di      Vereinte Dienstleistungsgewerkschaft (Germany)

16                                                        PUBLIC SERVICES INTERNATIONAL
INTRODUCTION

Background and context:                                    significantly affect both the quality and quantity of
                                                           jobs. New types of jobs and employment are chang-
Digitalization and the future                              ing the nature and conditions of work by altering
                                                           skills requirements and replacing traditional patterns
of work                                                    of work and sources of income.5"

N
                                                           This report defines digitalisation as the interaction
       ew digital technologies and the digitalisation      between new digital technologies and the economic,
       of communication, production and administra-        social, employment and work-related transformation
       tion processes have become one of the key           processes that result from the use and introduction
drivers of economic and social change on a global          of such technologies.
scale. In academic debates, the digital transforma-
tion of the economy has been compared to previous          There is a growing awareness that digitalisation and
industrial revolutions and cycles1 and described as        digital transformation process are having and will
the start of a new era of capitalism2.                     continue to have a profound impact on the way pub-
                                                           lic services are organised and delivered, as well as

                                                                                                                      INTRODUCTION
Digitalisation is a multi-dimensional term defined in      on the relationship between public services and citi-
different ways depending on the specific angle of ob-      zens/users6. By contrast, the impact of digitalisation
servation and analysis. Narrower definitions focus on      on public services from a labour perspective, includ-
the adoption of digital technologies and processes in      ing on employment and working conditions, but also
economic and social activities while broader defini-       on workers' rights and collective bargaining has not
tions also refer to its transformational effects on hu-    yet entered public debates.
man civilizations, societies, and the economy. This is
illustrated by the following definition from the OECD:     For policy makers, business consultants, IT multi-
                                                           nationals and the tech industry, digitalisation is syn-
"Digitisation is the conversion of analogue data           onymous with opportunities such as increased ef-
and processes into machine-readable format.                ficiency and cost-reductions in manufacturing and
Digitalisation is the use of digital technologies and      service work, access to new profit opportunities and
data as well as interconnection that result in new or      economic growth, and IT-related job creation, with
changes to existing activities. Digital transformation     unexplored potential for innovation and a greener
refers to the economic and societal effects of digiti-     economy.
sation and digitalisation.3"
                                                           But digitalisation is not only about opportunities. It
Beyond definitions, what ultimately matters is that        is also associated with the replacement of human
digitalisation is having a powerful transformational       work by digital processes and devices, robots, new
impact. New and 'disruptive' technologies such as          forms of performance and behaviour control in the
cloud computing, big data gathering and analytics,         workplace and the unregulated collection of person-
Internet of Things (IoT), machine learning or artificial   al data. Digitalisation is also giving rise to new forms
intelligence (AI)4 not only affect all sectors of the      of employment relationships, e.g. the placement of
economy, including public services, but also impact        jobs and 'gigs' under precarious conditions. All of this
employment and how we work. As noted in 2018 by            significantly impacts labour rights and collective bar-
the ILO Global Commission on the future of work, "in-      gaining conditions.
creased digitalization and automation is expected to

DIGITALIZATION AND PUBLIC SERVICES: A LABOUR PERSPECTIVE                                                              17
From the perspective of labour and work, digitalisa-
               tion presents opportunities, but also risks and threats.
               This is highlighted in the following table that summa-
               rizes its main potential impacts.

                Table 1: Overview of the main opportunities and threats related to digitalisation

                 Opportunities                                               Threats
                 New jobs (computer engineers and scientists,                *   Destruction of medium and low-skilled jobs (automa-
                 network experts, maintenance etc.)                              tion and computerisation)
                 *   More ‘agile’ work organisation; new forms of            *   Intensification of ‘anytime, anywhere’ work; ‘al-
                     more flexible and more autonomous work                      ways-on culture’; ‘hyper-connectivity’ resulting in
                                                                                 blurring of the boundary between private life and
                                                                                 working life leading to stress and burnout
                 *   Abolition of repetitive, low-skill and routine tasks,   *   Loss of control by workers over their own expertise,
                     reduction or elimination of arduous or dangerous            know-how and free will (becoming the “tool” of a
                     work. Improvement of occupational safety and                machine)
                     health
                 *   Better ergonomics, help in performance of heavy         *   Digital management, policing of workers, risk of mutu-
                     or complex tasks                                            al loss of trust between employees and management
INTRODUCTION

                 *   New forms of collaboration and cooperation              *   De-personalization of work, loss of face-to-face in-
                     among workers                                               teractions, erosion of social skills at work
                 *   Reshoring (return of industries and new ‘smart’         *   Precarisation of jobs and of employment relation-
                     factories – and jobs – to their regions or country          ships, dependence on ‘data masters’; ‘servification’
                     of origin)
                 *   Possibility of new ways of distributing productivi-     *   Weakening of collective action and industrial rela-
                     ty gains (working time reduction)                           tions; shrinking of traditional collective bargaining
                                                                                 coverage
                 *   Possibilities of social emancipation due to a new       *   Skills and training/labour demand mismatch
                     concept of ‘work’ and change of economic mod-
                     el based on peer-to-peer relations (where all par-
                     ticipants/actors are equal) and common goods
                                                                             *   Exacerbation of inequalities (as regards skills and
                                                                                 competences, “core” vs. “peripheral” jobs and po-
                                                                                 sitions, etc.)
                                                                             *   Wage level stagnation or decline due to an increase
                                                                                 in highly flexible employment relationships and inter-
                                                                                 rupted employment histories
                                                                             *   "Digital Taylorism" and emergence of a class of digital
                                                                                 workplace-based workers (crowd sourcing); world
                                                                                 competition among workers for all jobs not requiring
                                                                                 face-to-face contact
                                                                             *   Erosion of country-based tax base and social insur-
                                                                                 ance financing

               Source: Adaptation from Degryse, 2016: Digitalisation of the economy and its impact on labour markets.

  18                                                                                         PUBLIC SERVICES INTERNATIONAL
The potential threats posed by the many facets of          by robots, how to ensure that skills and competence
digitalisation are exemplified in the following vignette   development keeps pace with digitalisation, and how
about the potential implications of automation, robo-      to manage adult learning so that all can benefit from
tisation and AI for the workplace. These risks raise a     new learning opportunities in order to ensure employ-
number of important questions, such as how to deal         ability in a digitalised world.
with job destruction and the replacement of workers

 Figure 1: Robots and the future of work: is technology destroying jobs and skills?

                                                                                                                   INTRODUCTION

 Source: CEDEFOP: Digitalisation and the future of work, available at: http://www.cedefop.europa.eu/
 de/events-and-projects/projects/digitalisation-and-future-work

Digitalisation and the ongoing developments of new         risk of job insecurity as they are less protected in
technologies will continue to have a major impact          terms of labour rights and social security coverage
on workers’ everyday life. Digitalisation has enabled      than workers in more traditional forms of employ-
the rise of a range of new forms of work, such as          ment9. Digitalisation is likely to add new types of
platform work, digitally mediated service work or          precarious work, especially in the grey area between
the 'gig-economy7 that often mixes or contains el-         salaried employment and self-employment and will
ements of traditional forms of precarious work such        increase the number of people in flexible, mobile and
as dependent self-employment, work on demand or            temporary employment10.
crowd working8 . Those involved in these increasing-
ly widespread forms of work operate under a higher

DIGITALIZATION AND PUBLIC SERVICES: A LABOUR PERSPECTIVE                                                           19
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